Four Simple Charts On What QE2 Has Accomplished

Societe Generale From the looks of it, QE2 hasn't done much and, therefore, QE3 is unlikely to do much either, according to Societe Generale analysts.

Essentially, the program has had little to no impact.

The only positive impact was on inflation expectations, which have strengthened. So, unless the stock market collapses, and/or unemployment increases sharply, QE3 following the end of QE2 on 30 June does not look necessary, even if rates are expected to remain low regarding the recent fragile economic data and the still dovish tone held by Bernanke yesterday. Fed's Fisher said recently "asking the Fed to print more money is not the answer".

But there remains the possibility that things could take a turn for the worse, rather then bounce back through the end of the year. So while QE2 was great evidence that monetary policy alone isn't working right now, that may not matter if things get worse.